Suits You chain saved but stores to close

The menswear group behind Suits You and Racing Green has secured a rescue deal that saved it from collapse but the plans will see it close more than 40 stores, including outlets in the Trafford Centre and the Lowry Outlet Mall in Salford Quays. Speciality Retail Group (SRG), which also owns the Young’s Hire brand, received backing from 98 per cent of landlords for turnaround plans that will allow the firm to pay less rent for loss-making stores and close underperforming sites.

The menswear group behind Suits You and Racing Green has secured a rescue deal that saved it from collapse but the plans will see it close more than 40 stores, including outlets in the Trafford Centre and the Lowry Outlet Mall in Salford Quays.

Speciality Retail Group (SRG), which also owns the Young’s Hire brand, received backing from 98 per cent of landlords for turnaround plans that will allow the firm to pay less rent for loss-making stores and close underperforming sites.

Around 300 jobs have been safeguarded initially, although the arrangement will see 42 of its 73 stores shut in 18 months’ time.

Brian Green, a north west partner at accountancy firm KPMG, who supervised the retailer’s company voluntary arrangement (CVA), said: “The approval of SRG’s CVA will come as a huge relief to the company and its stakeholders, particularly its 300 staff.

“If the creditors had not supported the company’s turnaround plans, it undoubtedly would have faced administration.”

Landlords have agreed to a 40 per cent reduction on rent in the loss-making sites, while rent in the remaining stores will be paid on a more manageable monthly instead of quarterly basis for 18 months.

But landlords have the option to take on new tenants in the meantime for the stores that are due to close, by giving 45 days’ notice. The agreement required approval by 75 per cent of landlords.